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Question 1

ECO 203 ASH

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ECO 203 Week 1 DQ 1 Economics Systems

ECO 203 Week 1 DQ 2 Role of Government

ECO 203 Week 1 Quiz

Answer 1

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Question 2

ECO 203 Week 1 DQ 1 Economics Systems

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Economics Systems

Discuss how your college education could be considered an investment in human capital. What is the opportunity cost of your degree?

Answer 2

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Question 3

ECO 203 Week 1 DQ 2 Role of Government

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Role of Government

Economics is the study of how society chooses to allocate its scarce productive resources (labor, capital, land, entrepreneurial talent).

Answer 3

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Question 4

ECO 203 Week 1 Quiz

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1. If an individual’s income increases, then the demand for a normal good will
2. An example of investment, as defined in economics, is
3. All but which one of the following could shift the demand curve?

Answer 4

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Question 5

ECO 203 Week 2 DQ 1 The Current State of the Economy and Unemployment

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Imagine a scenario where there is a decline in aggregate demand. Identify which part of the business cycle is part of a decline in aggregate demand. Gross Domestic Product (GDP) measures the amount of new production. A change in the amount of new production affects employment.

Answer 5

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Question 6

ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation

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Who Benefits and Who Loses from Inflation

Inflation is an important policy issue because it causes a redistribution of income and wealth, and discourages saving and investment. Discuss how inflation affects borrowers and lenders, asset prices, and households on fixed incomes.

Answer 6

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Question 7

ECO 203 Week 2 Quiz

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1. The term “recession” refers to a
2. Who is NOT a loser in inflation?
3. The transfer of funds from savers to business investors takes place in the

Answer 7

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Question 8

ECO 203 Week 3 Assignment Efforts to Reduce the Budget Deficit

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Efforts to Reduce the Budget Deficit

The rapid growth of the national debt alarmed some politicians and created pressure for restricting Congress’s unlimited ability to spend.

Answer 8

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Question 9

ECO 203 Week 3 DQ 1 Government Fiscal Policy

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Government Fiscal Policy

Between 2007 and 2009 the U.S. economy experienced a severe recession. In an effort to stimulate the economy, the federal government passed a stimulus package. Explain the federal government’s use of fiscal policy (the stimulus) to promote growth and employment. Support your ideas with concepts found in the assigned reading. Include the following in your response:

Answer 9

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Question 10

ECO 203 Week 3 DQ 2 Budget Deficits and the National Debt

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Budget Deficits and the National Debt

Between 2007 and 2011 the federal budget deficit grew from $160.7 billion to $1,299.6 billion, and the national debt grew from $8.9 trillion to $14.8 trillion. (Figure 10.1: The ratio of debt to GDP, 1977-2011.)

Answer 10

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Question 11

ECO 203 Week 3 Quiz

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1. The time between the legislation of fiscal policy and its effect on output and employment is called
2. The federal income tax is
3. The largest single item in the federal budget is

Answer 11

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Question 12

ECO 203 Week 4 DQ 1 Federal Reserve Bank Policy during the 2007 To 2008 Recession

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Federal Reserve Bank Policy during the 2007-2008 Recession

From 2007-2010, the Federal Reserve Bank (the Fed) used many practices that had never before been seen from the central bank of the United States.
Discuss the some of the actions that the Fed took during this period. Such as:

Answer 12

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Question 13

ECO 203 Week 4 DQ 2 The Effect of Bank Lending on the Company

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The Effect of Bank Lending on the Economy
In conducting expansionary monetary policy, even if the Federal Reserve Bank is providing reserves to the banking system, during a recession or during periods of slow economic growth, banks may choose not to lend out their reserves when interest rates are low and potential borrowers look risky. This is known as a “credit crunch”. Explain how a credit crunch affects economic growth. Specifically, answer these questions in your post:

Answer 13

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Question 14

ECO 203 Week 4 Quiz

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1. M1 includes all but which one of the following?
2. The transactions demand for money depends on
3. Individuals accept dollars because
4. The fact that money is legal tender increases its

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Question 15

ECO 203 Week 5 DQ 1 Foreign Direct Investment

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Foreign Direct Investment

Imagine you are in charge of development for a developing country and were approached by a multina-tional corporation interested in locating in your country.

Identify some of the benefits and some of the costs to the host country from allowing a multinational corporation to locate in a country with a developing economy. Discuss with your classmates if developmental assistance from world developmental agencies, such as the World Bank or the United Nations, would be preferable to private investment.

Answer 15

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Question 16

ECO 203 Week 5 DQ 2 Economies In Transition

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Economies in Transition

The movement in the direction of a market-based system with freely determined prices, competition, profits, private ownership, and other features of capitalism is not simple. Discuss some of the challenges associated with an economy transitioning from socialism to capitalism.

Answer 16

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Question 17

ECO 203 Week 5 Final Paper Expansionary Economic Policy

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In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Describe the actions the government would take in conducting expansionary fiscal policy and expansionary monetary policy.

Expansionary Fiscal Policy:

Answer 17

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